File a BOI Report: It’s Simple, Important, and Totally Doable!
If you’ve heard about needing to file a BOI report, but feel confused? Let me help you understand. The Beneficial Ownership Information (BOI) report and feel like it’s just another thing on your business to-do list, don’t worry—you’re not alone.
The need to file a BOI Report is a new requirement that’s here to stay, but the good news is it’s straightforward, important, and something you can handle yourself. Let’s break it down so you can check this off your list with confidence!
Why Are We Doing This?
The BOI report comes from the Corporate Transparency Act (CTA), a law designed to make it harder for bad actors to hide behind businesses to commit crimes like money laundering or tax evasion.
This report tells the government who owns or controls a business. If you’re a creative entrepreneur running a business, this helps keep the financial playing field fairer for everyone.
Who Needs to File?
The BOI report doesn’t apply to everyone, but here’s the rundown:
• Sole Proprietorships
If you’re a one-woman show without an LLC or corporation, good news: you’re off the hook! This law doesn’t consider sole proprietorships formal entities, so you don’t need to file a BOI report and can focus on creating instead.
• LLCs
Got an LLC? You’ll need to file. The CTA (Corporate Transparency Act) requirements apply to most creative businesses that register as an LLC. It’s part of the deal when you register with your state.
• Corporations
Similarly, corporations need to file. Has your business grown to the point of being a corporation? Then you’ll need to submit a BOI report. This is also true if you are an “S” Corporation.
If you’re not sure whether you need to file, just think about how your business is registered. If you’ve got official paperwork from your state saying you’re an LLC or a corporation, this applies to you!
When Do You Need to File?
Deadlines are important here, so mark your calendar:
• If your business was created before January 1, 2024, you have until December 31, 2024, to file your report.
• If you’re starting your business on or after January 1, 2024, you’ll need to file within 90 days of registering your business.
What Happens If You Don’t File?
Let’s be real—nobody wants to deal with fines or penalties. Skipping the BOI report could cost you $500 per day of non-compliance.
Plus, there’s the possibility of criminal charges if you completely ignore the requirement. Filing may not be glamorous, but it’s way better than dealing with those consequences!
How to File Your BOI Report
The process is as simple as piecing together a quilt block (well, maybe easier depending on the pattern!). Head over to the official FinCEN BOI E-Filing System to get started. Here’s what you’ll need:
• Names, birthdates, and addresses of your beneficial owners.
• Their identification numbers (like a driver’s license or passport).
It’s a quick process, and you don’t need to hire anyone to do it for you—unless you just don’t want to deal with it.
Why This Matters
Filing your BOI report isn’t just about staying out of trouble—it’s about contributing to a safer, more transparent business environment. Whether you’re running an online shop, designing quilt patterns, or selling your creative work, you’re helping build a community where everyone can thrive.
Let’s Get It Done
Don’t let this requirement sit in the back of your mind. Set aside 30 minutes, grab a cup of coffee, and knock it out.
Trust me—you’ll feel great knowing it’s done, and you can get back to the work that lights you up. If you need a helping hand – feel free to book a consultation and we can work it out together!
You’ve got this!